How to Buy Gold

Why People Buy Gold

Simply put, people buy gold for peace of mind. For older adults, gold can play a role in a well-rounded financial plan, especially if you’re focused on preserving wealth, rather than taking on high-level or unpredictable risk.

Expert Insights

From Peter C. Earle, Ph.D, Director of Economics and Economic Freedom and Senior Research Fellow

Precious metals have tended to respond strongly during periods of economic or financial stress.

A Hedge Against Inflation

Rising inflation typically leads to higher interest rates. This can reduce corporate profits and deflate stock performance.1 Inflation also reduces the purchasing power of cash over time. In contrast, gold has historically helped offset this effect. For example, during periods of high inflation, such as the 1970s, gold prices rose significantly, helping protect long-term purchasing power.2

Want to learn more about owning gold? Watch our video below with economist Dr. Peter Earle, the Director of Economics and Economic Freedom and a Senior Research Fellow at the American Institute for Economic Research.

Portfolio Diversification

The gold market often behaves differently than traditional investments.

• Stock market declines → gold may remain stable or increase
• Economic uncertainty rises → gold demand often increases
• Currency value weakens → gold can act as a store of value

Because of this, the World Gold Council notes that gold can help reduce overall portfolio volatility when used in moderation. Gold works best as a supporting asset in your portfolio, not the centerpiece.

Global Demand and Stability

Gold is widely used across:

• Central bank reserves
• Jewelry markets
• Industrial applications

Central banks have been increasing gold holdings in recent years, reinforcing its long-term importance in global financial systems.

Where to Buy Gold

Finding a reliable source is one of the most important steps when learning how to buy gold.

1. Reputable Online Dealers

Online dealers are one of the most common and convenient options.

What to look for:

• Transparent pricing tied to the current spot price
• Clear return and shipping policies
• Insurance during delivery

Well-known dealers often provide real-time pricing and a wide selection of coins and bars.

2. Local Coin Shops

Buying locally allows you to inspect the gold in person and ask questions directly. However, prices may be slightly higher due to overhead costs.

Benefits:

• Immediate ownership
• Personal interaction
• No shipping delays

3. Brokerage Platforms

If you prefer not to handle physical gold, brokerages allow you to buy:

• Gold ETFs
• Gold stocks

These platforms are regulated and provide easy tracking of your investments.

4. Gold IRA Providers

Specialized companies help set up Gold IRAs, which allow you to hold physical gold within a retirement account.

No matter where you buy your gold, always research the seller’s credentials. The Federal Trade Commission warns that precious metals scams often target older adults through pressure tactics or misleading claims.

We’ve reviewed some of the best gold IRA providers on the market to help narrow down your decision:

• Goldco IRA review
• Birch Gold IRA review
• Augusta gold IRA review
• Fidelity gold IRA review

How to Buy Gold Bars and Coins

Physical gold is appealing because it’s tangible and not tied to a financial institution. Here’s a step-by-step guide to buying physical gold:

1. Choose your form
   • Coins (e.g., American Gold Eagle)
   • Bars (ranging from small grams to large bullion bars)
2. Check purity
   • Investment-grade gold is typically 99.5 percent pure or higher
3. Understand pricing
   • Spot price + dealer premium = final cost
   • Premiums vary based on size and demand
4. Make the purchase
   • Use secure payment methods such as bank transfer or credit card
5. Plan for storage
   • Home safe
   • Bank safe deposit box
   • Third-party vault

Coins vs. Bars: Which Is Better?

Not sure whether to invest in gold coins or bars? Below is a look at the benefits and features of both:

How to Buy Gold Stock

Gold stocks offer exposure to gold prices without the need to store physical metal. When you purchase gold stock, you’re buying shares in:

• Mining companies
• Royalty and streaming companies
• Gold exchange-traded funds (ETFs)

Below is a step-by-step guide to buying gold stocks:

1. Open a brokerage account
2. Research companies or funds
3. Decide how much to invest
4. Place your trade

Expert Insights

From Peter C. Earle, Ph.D, Director of Economics and Economic Freedom and Senior Research Fellow

Gold stocks can behave differently because they’re influenced not just by gold prices, but also by company performance and broader market conditions.

Types of Gold Investments

• Mining stocks: Higher potential returns but more volatility
• Gold ETFs: Track gold prices and are easier to manage
• Royalty companies: Often less exposed to operational risks

According to the SEC, stocks can be influenced by company performance, management decisions, and broader market trends, not just gold prices.

Understanding Gold IRAs

A Gold IRA is a type of self-directed individual retirement account that allows you to hold physical gold instead of traditional assets like stocks or bonds. The IRS requires gold in IRAs to meet strict purity standards, generally 99.5 percent or higher.

Here’s how it works:

• You open a self-directed IRA with a custodian
• You purchase IRS-approved gold
• The gold is stored in an approved depository

Always compare multiple providers before opening a Gold IRA. Fees and service quality can differ significantly.

Gold IRAs may be suitable for:

• Long-term retirement planning
• Investors concerned about inflation or market instability
• Those who want physical gold within a tax-advantaged account

However, they may not be ideal for those who need liquidity or want low-cost investing.

The Pros and Cons

Benefits of gold IRAS include:

• Tax advantages similar to traditional or Roth IRAs
• Protection against inflation and market volatility
• Long-term wealth preservation

Gold IRAs often come with costs like:

• Setup fees
• Annual custodian fees
• Storage and insurance costs

These fees can vary widely depending on the provider.

How Much Gold Should You Buy?

Gold should be part of a balanced strategy, not the majority of your investments. Here are some general investing guidelines:

• The World Gold Council recommends allocating 5 to 10 percent of your portfolio to gold
• Adjust that percentage as needed, with these things in mind:
  • Risk tolerance
  • Income needs
  • Investment timeline

For example, a retiree with $300,000 in savings might allocate $15,000 to $30,000 in gold across a mix of ETFs and physical coins.

Risks and Safety Considerations

While gold is often seen as a “safe” investment, it still carries risks, such as:

• Price volatility: Gold prices fluctuate based on global conditions
• No income: Gold does not produce dividends or interest
• Storage concerns: Physical gold requires security and storage

Fraud and Scams

The FTC warns that scams involving precious metals often target older adults. You can avoid this happening by thoroughly researching the professionals you work with. Trust your gut, and look out for warning signs like:

• High-pressure sales tactics
• Promises of guaranteed returns
• Requests for unusual payment methods, like gift cards

Practical Tips for Older Adults and Caregivers

Buying gold later in life should focus on simplicity, accessibility, and peace of mind. Here are some tips for investing in gold.

• Keep investments easy to manage: Choose options that are easy to understand, especially if a caregiver may need to assist.
• Maintain liquidity: Ensure you have access to funds when needed. Gold ETFs are generally easier to sell than physical gold or IRA-held assets.
• Organize documentation: Keep records of purchases, storage details, and account information. This is essential for estate planning and caregiver support.
• Balance your strategy: Gold should complement income-producing investments, emergency savings, and long-term growth assets

Conclusion

Understanding how to buy gold gives you more control over your financial future. Whether you choose physical gold, stocks, or a gold IRA, the key is to align your decision with your goals, comfort level, and long-term needs.

For older adults and caregivers, gold can provide reassurance as a steady, reliable asset during uncertain times. By starting small, choosing reputable sources, and keeping your strategy simple, you can invest in gold with confidence.

In the end, buying gold is about building a financial foundation that feels secure, stable, and ready for whatever lies ahead.